04 April 2008 20:57 [Source: ICIS news]
HOUSTON (ICIS news)--The American Chemistry Council (ACC) lowered its assessment of the US economy on Friday to its lowest ranking.
The ACC keeps a running tab of 20 economic indicators in its weekly report. Only seven are now positive, and the council has assigned a red banner to the economy as a result.
The red banner is one of three assessments that the council gives to the general US economy.
Kevin Swift, the ACC's chief economist, said recent economic reports were all negative, indicating that the US economy has fallen into a mild recession.
In particular, automobile producers reported that light vehicle sales fell to a pace of 15m units in March, the worst performance for that month since March 1993, Swift said.
Automobile are an important chemical end market, in that each has an average of $2,200 (€1,408) worth of chemistry, the council said. Such chemical-related parts include rubber hoses, plastic dashboards, catalysts, fibres, adhesives and coatings.
Swift said the US malaise could be spreading, based on a report from JP Morgan. It showed that global production growth in manufacturing was at its weakest level since May 2003.
For the business of chemistry, the ACC assigned a yellow banner, which lies in the middle of the council's assessment.($1 = €0.64)
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